Medtronic approval only ‘incremental positive,’ says Piper Sandler

Piper Sandler analyst Matt O’Brien views the FDA approval Friday of Medtronic’s (MDT) MiniMed 780G with the Guardian 4 Sensor as an "incremental positive" following the recent reinspection at Northridge. Medtronic has struggled with new product updates recently but the domestic diabetes business is only about 3% of total revenue and an improvement in results here is only a modest boost to sales, the analyst tells investors in a research note. Both Insulet (PODD) and Tandem Diabetes (TNDM) traded off on the news but the impact to 2024 estimates for both companies "will be modest and manageable," says Piper. The firm doubts Tandem users will move to Medtronic and says the unique form factor of O5 should allow Insulet to continue taking users from Medtronic. It keeps a Neutral rating on Medtronic with an $80 price target.